Supplier Consolidation and Commodity Management

Customer Issue

Customer with 250+ label suppliers in North America

  • Poor quality and delivery metrics
  • No visibility of annual purchase value (APV) and demand
  • Rising costs across portfolio
  • Complexity cost: Excessive part numbers and specifications to manage
  •  

The AWT Solution

Commodity Management Contract – Appointed “Integrated Label Supplier Manager”

  • Assigned all commodity POs
  • 100% plant audits for all customer facilities
  • Re-source or in-source labels from poor suppliers
  • Part review and consolidation
  • Spec review and consolidation to a single master spec
  • Value engineering – material and design optimization

Customer Benefits

Cost Savings

  • 8% average annual savings for over 10 years
  • $2.2 million, 10 year cumulative
 

Productivity Gains

  • Eliminated >200 suppliers oversight
  • Spec consolidation from 25 to 1
  • Quality improvement >60%
  • Quality system compliance with suppliers meeting IATF or ISO requirements
  •  

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Cold Chain Labeling

The study and engineering of healthcare remedies began long before the mid 1800’s, but it’s around that time organic compounds like morphine became available commercially as a source of pain relief. The first rudimentary clinical trials occurred during the 1500’s, but it wasn’t until 1943 in the UK when the first double blind, regulated clinical trial took place. Since then, discoveries and breakthroughs in drug remedies have been occurring more frequently, and with greater complexity when it comes to molecular structure.

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Customer Issue

Customer with 250+ label suppliers in North America

  • Poor quality and delivery metrics
  • No visibility of annual purchase value (APV) and demand
  • Rising costs across portfolio
  • Complexity cost: Excessive part numbers and specifications to manage
  •  

The AWT Solution

Commodity Management Contract – Appointed “Integrated Label Supplier Manager”

  • Assigned all commodity POs
  • 100% plant audits for all customer facilities
  • Re-source or in-source labels from poor suppliers
  • Part review and consolidation
  • Spec review and consolidation to a single master spec
  • Value engineering – material and design optimization

Customer Benefits

Cost Savings

  • 8% average annual savings for over 10 years
  • $2.2 million, 10 year cumulative
 

Productivity Gains

  • Eliminated >200 suppliers oversight
  • Spec consolidation from 25 to 1
  • Quality improvement >60%
  • Quality system compliance with suppliers meeting IATF or ISO requirements
  •